The artificial intelligence (AI) boom has ignited one of the most intense technology races in history, with chipmakers battling for dominance in data centers, cloud infrastructure, and the next generation of AI workloads. And while Nvidia (NVDA) continues to command the spotlight, recent market turbulence has reminded investors that leadership in this space is anything but settled. Shares of the AI darling and its closest rival, Advanced Micro Devices (AMD), came under pressure last week after a report suggested Meta (META) may consider spending billions on Google’s (GOOG) (GOOGL) AI chips. This sparked fears that AMD could lose ground just as excitement around its MI series accelerators has begun to build.
But according to Mizuho’s Jordan Klein, investors may be looking at the situation through far too narrow a lens. Klein argues that the AI race isn’t a short-term sprint where early leaders automatically secure long-term victory. Instead, he describes it as a multi-phase marathon. In other words, no single headline—whether about a Google-Meta deal or a temporary pause in demand—should be mistaken for a definitive turning point.
-
1 Penny Stock Wall Street Predicts Will Soar More Than 450% in 2026
-
Netflix is Still Cheap Here – Shorting Out-of-the-Money Puts Works Well
-
Powell, PCE and Other Key Thing to Watch this Week
-
Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines.
With that, let’s take a closer look at why AMD still has a strong chance to finish at the front of the pack.
Advanced Micro Devices is a globally recognized semiconductor firm specializing in the development and distribution of high-performance computing products. AMD offers a broad range of products, including AI accelerators, x86 microprocessors, and graphics processing units (GPUs), available both as standalone components and integrated within other systems. The company’s product lineup includes well-known brands like AMD Ryzen processors and AMD Radeon graphics. It currently has a market cap of $348.8 billion.
Shares of the chipmaker have rallied 80.1% on a year-to-date basis. Still, AMD shares pulled back sharply in November, dropping 22.8% from their recent all-time high of $267.08 as investors grew concerned about everything from interest rates and rising memory prices to Google’s increasing momentum in AI.
Shares of Advanced Micro Devices came under pressure last week after The Information reported that Meta Platforms was in discussions to spend billions on Google’s AI chips. The reasoning behind the recent pullback was obvious. The report said Meta was in talks to begin using Google’s tensor processing units (TPUs) in its data centers starting in 2027. These chips, a type of application-specific integrated circuit (ASIC), offer a cheaper and more energy-efficient alternative to AMD’s more versatile GPUs. With that, the stock fell on concerns that Google’s TPUs could chip away at demand for AMD’s GPUs.
About the Author
